Fungi play a crucial role in food production and processing, influencing various stages from cultivation to consumption. They contribute to food cultivation by breaking down organic matter, recycling nutrients, and promoting plant growth through symbiotic relationships. Fungi such as yeasts and molds are essential in fermentation processes, producing a wide range of fermented foods and beverages with unique flavors and textures. Additionally, fungi are vital in creating enzymes and bioactive compounds used in food processing, enhancing nutritional value, shelf life, and safety. However, certain fungal species can cause food spoilage and produce mycotoxins, necessitating strict quality control measures. Understanding the complex interactions between fungi and food systems is essential for optimizing food production, ensuring food security, and mitigating fungal contamination risks. This review highlights the diverse roles of fungi in food systems, including their use in fermentation, enzyme production, and food spoilage. It also discusses the challenges posed by mycotoxins and the importance of ongoing research to harness the potential of fungi for sustainable and safe food production. The review covers the historical use of fungi in food production, the diversity of fungal species in food products, methods for fungal identification and characterization, and the factors influencing fungal growth and spoilage in different food matrices. It also examines the implications of mycotoxins such as aflatoxin, ochratoxin A, fumonisins, patulin, and zearalenone for food safety. The review emphasizes the need for continued research to improve food safety and sustainability through the application of fungal biotechnology.Fungi play a crucial role in food production and processing, influencing various stages from cultivation to consumption. They contribute to food cultivation by breaking down organic matter, recycling nutrients, and promoting plant growth through symbiotic relationships. Fungi such as yeasts and molds are essential in fermentation processes, producing a wide range of fermented foods and beverages with unique flavors and textures. Additionally, fungi are vital in creating enzymes and bioactive compounds used in food processing, enhancing nutritional value, shelf life, and safety. However, certain fungal species can cause food spoilage and produce mycotoxins, necessitating strict quality control measures. Understanding the complex interactions between fungi and food systems is essential for optimizing food production, ensuring food security, and mitigating fungal contamination risks. This review highlights the diverse roles of fungi in food systems, including their use in fermentation, enzyme production, and food spoilage. It also discusses the challenges posed by mycotoxins and the importance of ongoing research to harness the potential of fungi for sustainable and safe food production. The review covers the historical use of fungi in food production, the diversity of fungal species in food products, methods for fungal identification and characterization, and the factors influencing fungal growth and spoilage in different food matrices. It also examines the implications of mycotoxins such as aflatoxin, ochratoxin A, fumonisins, patulin, and zearalenone for food safety. The review emphasizes the need for continued research to improve food safety and sustainability through the application of fungal biotechnology.